I am reaching out to see if anyone on here is operating a pool construction business in Florida currently. I am looking to purchase one but was concerned on the head winds the business might face with high interest rates and the covid spike coming down. What is the outlook looking like for any owners in this space and do you think you will be able to at least maintain your 2023 numbers going forward? Appreciate any feedback.
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What percentage of dollars are you paying over the FMV the hard assets less any debt still owed on those assets?
That is what you are paying for (intangible goodwill). That is the true cost of buying the business rather than starting your own from scratch. And that is what you are risking when considering future obstacles. This owns you are not doing some sort of buyout over time (3-5 years).
Yes agree with the buyout and we thought about structuring it where the current owner rolls equity so still has interest in the business. Currently has minimal debt on around 700k in equipment with less than 100k in debt on them.
The heart of any construction business is knowing your costs. The value of the business is the owners knowledge of that. How are you acquiring that?